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Utility Scale Power Generation from Wind Energy - in Sudan Project (PUSPG-WE)"

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Utility Scale Power Generation from Wind Energy - in Sudan Project (PUSPG-WE) Mid-Term Review (MTR) for Evaluation Report of the UNDP/GEF project "Promoting Utility Scale Power Generation from Wind Energy - in Sudan Project (PUSPG-WE)" Project ID:00090222 PIMS Number: 4726 Evaluators Ron Mukanya & Dr. Babiker Abdalla Ibrahim October 2017 i | Promoting Utility Scale Power Generation from Wind Energy Project in Sudan 2017 Contents LIST OF ACRONYMS ..................................................................................................................................................... 2 1.0 EXECUTIVE SUMMARY ......................................................................................................................................... 3 2.0 INTRODUCTION ............................................................................................................................................... 12 2.1 BACKGROUND ........................................................................................................................................................ 12 2.2 DESCRIPTION OF THE PROJECT ............................................................................................................................. 13 2.3 PURPOSE OF THE MID -TERM EVALUATION ...................................................................................................... 14 2.4 METHODOLOGY OF THE MID-TERM REVIEW (MTR) ........................................................................................ 15 2.5 STRUCTURE OF THE MID -TERM REVIEW (MTR) REPORT .............................................................................. 16 3.0 THE PROJECT AND ITS SCOPE ................................................................................................................. 16 3.1 SHORTAGES OF ELECTRICITY ISSUES AND OPPORTUNITIES IN SUDAN .......................................................... 16 3.2 PROBLEMS THE PROJECT SEEKS TO ADDRESS .............................................................................................. 17 3.3 PROJECT GOAL AND OBJECTIVES .................................................................................................................. 17 3.4 PROJECT MANAGEMENT AND IMPLEMENTATION ARRANGEMENTS ................................................................ 17 3.5 PROJECT TIMING AND MILESTONES ................................................................................................................ 20 3.6 MAIN STAKEHOLDERS BASELINE ANALYSIS ..................................................................................................... 20 3.7 RESULTS EXPECTED ........................................................................................................................................ 21 3.7.1 Grid-connected power generation from wind farm introduced ............................................................. 21 3.7.2 Policy, institutional and regulatory framework adopted ......................................................................... 22 3.7.3 The wind technology support and delivery system Strengthened ....................................................... 22 3.7.4 Adaptive learning and replication plan supported .................................................................................. 22 4.0 MID-TERM REVIEW FINDINGS AND CONCLUSIONS ............................................................................ 22 4.1 INTRODUCTION ................................................................................................................................................ 22 4.2. KEY OBSERVATIONS FROM STAKEHOLDER AND PROJECT STAFF INTERVIEWS . ................................................ 23 4.3. PROJECT DELIVERY , OUTPUTS AND OUTCOMES ................................................................................................. 23 4.5. EFFECTIVENESS , EFFICIENCY AND TIMELINESS OF PROJECT IMPLEMENTATION ................................................. 32 4.6 REMAINING BARRIERS TO ACHIEVING THE PROJECT OBJECTIVE .................................................................... 32 4.6.1 Funding for the base line project .............................................................................................................. 33 4.6.2 Budget revision and budget line item allocations ................................................................................... 34 4.6.3 Low Institutional Adaptive Management Capacity ................................................................................. 34 4.6.4 Low levels of Private Sector Investment Advisory ................................................................................. 35 4.7 PROJECT ADMINISTRATION AND MANAGEMENT ARRANGEMENTS ................................................................. 35 4.8 WORK PLANNING ............................................................................................................................................. 47 4.9 FINANCIAL MANAGEMENT ............................................................................................................................... 48 4.10 PROJECT LEVEL REPORTING , MONITORING AND EVALUATION SYSTEMS ........................................................ 51 4.11. SUSTAINABILITY .................................................................................................................................................. 52 4.11.1 Financial risks to sustainability ........................................................................................................... 52 4.11.2 Socio-economic risks to sustainability .............................................................................................. 52 4.11.3 Institutional framework and governance risks to sustainability ..................................................... 53 4.11.4 Environmental risks to sustainability ................................................................................................. 53 i | Promoting Utility Scale Power Generation from Wind Energy Project in Sudan 2017 List of Acronyms UNDP CO UNDP Country Office CO 2 Carbon dioxide CSP Concentrating Solar Power EE Energy Efficiency EENS Expected Energy Not Supplied EIA Environmental Impact Assessment ERA Electricity Regulatory Authority GDP Gross Domestic Product GEF Global Environment Facility GHG Greenhouse Gas GT Gas Turbine HCENR Higher Council for Environment and Natural Resources IEA International Energy Agency IPP Independent Power Producer MIC Ministry of International Cooperation M&E Monitoring and Evaluation MEM Ministry of Energy and Mining MoNRPD Ministry of Environment, Natural Resources and Physical Development MoF Ministry of Finance MoM Ministry of Mining MoP Ministry of Petroleum MoSC Ministry of Science and Communications MWRE Ministry of Water Resources and Electricity MRV Monitoring, Reporting and Verification MW Megawatt NAMA Nationally Appropriate Mitigation Action NEC National Electricity Corporation NERC National Energy Research Centre NGO Non-Governmental Organisation O&M Operations & Maintenance PIR Project Implementation Review PMU Project Management Unit PPG Project Preparation Grant PPP Public Private Partnership PB Project Board PUSPG-WEP Promoting Utility Scale Power Generation from Wind Energy Project PV Photovoltaic QPR Quarterly Progress Report RCU UNDP Regional Coordination Unit RE Renewable Energy RTA UNDP Region-Based Technical Advisor SETCO Sudanese Electricity Transmission Co. SWH Solar water heater SSMO Sudanese Standards and Metrology Organization STPG Sudanese Thermal Power Generating Co. TPR Tripartite Review TTR Terminal Tripartite Review TWh Terawatt-hour WB World Bank UNDAF United Nations Development Assistance Framework UNDP United Nations Development Programme UNEP United Nations Environment Programme UNFCCC United Nations Framework Convention on Climate Change 2 Promoting Utility Scale Power Generation from Wind Energy Project in Sudan 2017 1.0 Executive Summary Like many developing countries, Sudan has a shortage of electricity. Approximately 35% of the population has access to electricity (MWRE-Renewable Energy Master Plan 2013). Even then, it is not reliable and experiences regular power outages. Hydro-power has the largest share of energy generation. The potential to expand hydro-power to meet future needs is limited. Sudan does not have significant oil or gas production and as a result will have to turn to importation of fossil fuels to meet future energy needs. Climate change threatens to affect rainfall patterns on which Sudan relies for the water that generates its hydro-power. This further emphasises the need for Sudan to diversify its energy sources. As part of this effort, the Promoting Utility Scale Power Generation from Wind Energy (PUSPG-WE) project seeks to address these problems by promoting the use of wind energy in Sudan. The project supports the removal of barriers to the adoption of utility-scale wind energy tied to the national grid in Sudan. Wind energy has been identified as a priority mitigation technology by the Government of Sudan, and, although it is a mature technology globally, it has not yet been adopted in Sudan. A systems approach is proposed to integrate energy policy analysis within the broader developmental objectives of Sudan. The project also establishes regulatory frameworks for encouraging private investments in grid-connected wind energy. Sudan currently has plans to develop utility- scale wind farms in four regions: Dongola in the North, Nyala in the West, the Red Sea coastal region and Khartoum. The development
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